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Nilsson, Hanna and Vahtra, Julia, 2017. Price premiums for organic pasta and pasta produced in Sweden : a hedonic pricing approach. First cycle, G2E. Uppsala: SLU, Dept. of Economics

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Abstract

Due to the growing interest for organically and locally produced food, several studies based on consumers’ stated preferences regarding organic and Swedish-produced food products have been conducted. However, attitudes and preferences do not always convert into actions, causing a void in the research (Jörgensen, 2011). This thesis aims to detect whether the Swedish consumers are willing to pay a price premium for organic and Swedish-produced pasta, based on revealed preferences. To determine the price premiums the hedonic pricing method is applied. The dataset includes 305 observations from different geographical areas in Sweden: Uppsala, Malmö, Bunkeflostrand, Stockholm, Limhamn, Norrköping and Göteborg. The price premiums obtained for the attributes “organic pasta” and “Swedish-produced pasta” were 7,9 SEK/kg and 2,3 SEK/kg respectively, nevertheless the price premium for “Swedish-produced pasta” did not show any significance in the model. The Swedish government has an ambition of increasing the organically certified farmland with 30 % to 2030 (Näringsdepartementet, 2017). Hence the results serve as an incentive for the farmers to increase their organic production, which is conformable with the government’s goal. In addition, the results provide an indication regarding how the Swedish consumers value the environmental qualities associated with organic food production.

Main title:Price premiums for organic pasta and pasta produced in Sweden
Subtitle:a hedonic pricing approach
Authors:Nilsson, Hanna and Vahtra, Julia
Supervisor:Säll, Sarah
Examiner:Hart, Robert
Series:Examensarbete / SLU, Institutionen för ekonomi
Volume/Sequential designation:1104
Year of Publication:2017
Level and depth descriptor:First cycle, G2E
Student's programme affiliation:NY001 Agricultural Programme - Economics and Management 270 HEC
Department:(NL, NJ) > Dept. of Economics
Keywords:organic, Swedish-produced, pasta, consumer preferences, environmental qualities, price premiums
URN:NBN:urn:nbn:se:slu:epsilon-s-6597
Permanent URL:
http://urn.kb.se/resolve?urn=urn:nbn:se:slu:epsilon-s-6597
Subjects:Economics and management
Language:English
Deposited On:13 Jul 2017 12:47
Metadata Last Modified:13 Jul 2017 12:47

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